Theme of the Day:
“Using the 89 Prepare” – A Bullish Locomotive 🚂🐂
Cycle Day 3 delivered in full pressure, with early core targets already achieved earlier than the RTH open. David marked it a wild-card session, however the market rapidly clarified—this was a one-way journey north. Any try to fade energy was met with swift ache, whereas disciplined longs discovered themselves cruising first-class.
Market Conduct & Construction
Cycle Framework: CD3 with fulfilled targets → “wild-card” atmosphere. Manny reminded the room: first day of the 4-day collection (S1H), which “units the desk” for the subsequent 3 days.
Line within the Sand: ES 6725. Above this = solely inexperienced lights. Under was noise.
Help Zones: 6700–6705 held agency because the launchpad.
Targets: From 6725, upside opened to 6735–6740, then 6766.67 (3-day cycle goal) → fulfilled like clockwork.
Dealer Playbook Highlights
Early Alerts: Manny’s homework commerce (Deep Help Purchase at ES 6672.50) was textbook—tag, reclaim, retest, rip.
Globex & Opening Vary: Globex midpoint (6727.50) aligned neatly with intraday LIS. Merchants who mapped this out prevented brief traps.
The 89 EMA “Prepare Trip”: David hammered the purpose—construction leaned lengthy, 89 EMA bullish, so shorts have been sucker traps. Staying aligned paid in full.
A10 Ripper: Afternoon acceleration confirmed bulls’ dominance, with Manny and David reinforcing NO SELLING.
Psychology & Self-discipline Notes
The Pitfalls of FOMO: A number of merchants admitted to forcing shorts—David and Manny known as this the vicious FOMO cycle: miss the lengthy → chase brief → get crushed → revenge commerce → repeat.
Greed & Overtrading: Manny shared battle scars—overcoming FOMO led straight into the greed lure. Knowledge of the day: “Shield the good points. Don’t threat the day’s income on late-session noise.”
Dealer Hacks: Bruce F’s “inexperienced/pink sticky be aware reminder” (lengthy bias solely) was easy but efficient. David permitted: “Inexperienced Gentle, Pink Gentle.”
Macro Taste
Political theater with the U.S. Gov’t shutdown threat loomed, however as David famous, “Markets love a Gov’t Shutdown.” Large MOC flows (+$4B Tuesday, +$900M imbalance at present) confirmed institutional purchase packages have been in cost.
Closing Tape
Afternoon sequence tracked completely to the S1H cycle pivots: 10:30 excessive → 12:30 low → 2:30 excessive.
The ultimate push topped out round 6765–6766, cycle targets fulfilled.
Into the shut: gentle MOC imbalance, muted fireworks, however the bullish agenda was plain.
✅ Abstract:
October kicks off with energy, self-discipline, and a reminder that buying and selling IS artwork—however provided that guidelines body the canvas. Those that aligned with the bullish construction rode the 89 EMA practice to success. Those that fought it… received a brand new “A-Gap” ripped, as David bluntly put it. 🎯
